Nifty’s surge to 25,000 marks India’s economic evolution: experts

As India celebrates its 78th Independence Day, the nation reflects on a journey of challenges and triumphs, mirrored by the growth and resilience of its stock markets. The Nifty 50 index, launched on April 22, 1996, with an initial value of 1136.28 points, has now surpassed 25,000 points, marking a nearly 22-fold increase.

In less than four years, as India entered the 21st century, the Nifty 50 climbed to 1592.90 points, showing early promise. By December 2, 2004, it crossed the 2000-point mark, setting the stage for further growth despite challenges. The global financial crisis of 2008 tested the market’s resilience, with the index plummeting from around 6300 points at the start of the year to 2500 points by year’s end. However, the market rebounded quickly, reaching 5200 points by December 31, 2009.

In September 2010, the Nifty 50 regained the 6000-point mark after more than two years. The index surged past 8000 points by the end of 2014, driven by optimism surrounding a new single-party majority government. On July 25, 2017, the Nifty 50 hit 10,000 points, coinciding with the implementation of the Goods and Services Tax (GST), a landmark reform.

The COVID-19 pandemic in early 2020 caused a sharp decline in the Nifty 50, which fell from around 12,000 points in January to about 7500 points by March. However, the index demonstrated resilience, recovering swiftly as the pandemic subsided. By 2021, the Nifty 50 surpassed 15,000 points, continuing its upward momentum. On August 1, 2024, it reached a new milestone of 25,000 points, highlighting the dynamic nature of the Indian stock market.

The Nifty 50 first crossed 20,000 points on September 11, 2023, and took 221 trading days to reach 25,000 points on August 1, 2024. This journey from 1136.28 points to 25,000 points underscores the evolution of India’s financial sector and its crucial role in the country’s economic development.

Ajay Bagga, a banking and market expert, commented on this journey, noting that the Nifty’s growth reflects the broader evolution of the Indian economy. He highlighted how sectors like IT, Pharma, Real Estate, Auto ancillaries, and Telecom have gained prominence in the Nifty market cap over the years. Looking ahead, Bagga predicted further sectoral shifts as e-commerce, artificial intelligence, fintech, and health tech companies rise to prominence.